Eric Adams’ memecoin team deflects after 82% crash: ‘Our partners had to rebalance the liquidity’

The team behind Eric Adams’ memecoin has spoken out after the token crashed some 82% hours after the former New York City mayor announced it in the middle of Times Square.

Launched on January 12, the NYC Token rose to a $585 million market value in less than an hour. But it fell just as quickly after a wallet connected to the launch withdrew the funds supporting the token’s price on exchanges, sending it into freefall.

Critics accused the NYC Token team of having orchestrated a rug pull, a type of crypto scam where developers build hype for a new crypto token then suddenly abandon it and leave it worthless, often by draining liquidity.

The team behind the token have since addressed the criticism on social media.

“Given the overwhelming support and demand for the token at launch, our partners had to rebalance the liquidity,” the official NYC Token X account said on Tuesday. “We’re in it for the long haul!”

It’s not clear who the partners in question are. The NYC token website says it is owned and operated by a company called C18 Digital.

The NYC token team did not immediately respond to a request for comment.

Celebrity rug pulls

It’s not the first time a high-profile politician or celebrity has had their reputation tarnished by being associated with a dubious crypto token.

In February, Argentine President Javier Milei threw his name behind a crypto called Libra, posting on X that the token is linked to a project that would focus on encouraging the growth of the Argentine economy.

Libra soared to a $4.5 billion market value before crashing some 97%. After the crash, Milei said he wasn’t aware of the project’s details.

In January 2025, Melania Trump’s memecoin followed a similar trajectory, skyrocketing to a $624 million market value before plummeting over 99%.

Both tokens were allegedly created and promoted by crypto influencer Hayden Davis and several others. They are being sued by US investors who accuse them of weaponising celebrity endorsements to promote memecoins and defraud investors.

Davis has denied any wrongdoing.

Then there’s HAWK, the memecoin promoted by internet personality Hailey Welch, better known online as the “Hawk Tuah girl.” In December 2024, she joined the long list of viral stars to leverage their celebrity clout to launch a memecoin.

But, just like Adams’ NYC Token, HAWK lost 90% of its value shortly after its launch, leaving thousands of investors out of pocket. The episode triggered a Securities and Exchange Commission investigation, which reportedly ended in March without any repercussions for Welch or the team behind the token.

What is the NYC token?

Funds raised through the NYC token will be used to fight antisemitism and anti-Americanism, educate children on blockchain and crypto technology, and provide scholarships for students from underserved communities, Adams said in a Monday interview on Fox Business.

The former New York mayor is no stranger to the attention crypto endorsements can bring. In November 2021, Adams announced he would take his first three paycheques as mayor in Bitcoin, earning him the nickname of “Bitcoin Mayor” for the rest of his tenure.

Yet he appears to have a patchy understanding of the technology.

In the interview, Adams repeatedly misspoke, referring to blockchain as “block change” technology.

When asked how he envisioned the NYC Token being used, he brought up Walmart’s use of enterprise blockchain Hyperledger Fabric in organising its supply chains. That’s like comparing Pokémon cards to logistics companies like DHL or FedEx.

Adams himself has yet to address the criticism surrounding the NYC token.

Tim Craig is DL News’ Edinburgh-based DeFi Correspondent. Reach out with tips at tim@dlnews.com.